Read this blog to find out all about the new NFO- ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund.

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The healthcare industry is growing in the country by leaps and bounds, thus making this sector one of the fastest growing segments in the market.

India, a country which is known for its pharmaceutical manufacturing and research with growing preventives and health insurance industry. Thus, there’s an improvement seen in the medical treatments, technologies, cost-competitive hospital sectors, etc. Thus, ICICI Prudential Mutual Fund launched ICICI Prudential Pharma, Healthcare and Diagnostics (P.H.D) Fund with an aim to capture this growth. It is an open-ended equity scheme which will invest in the pharma sector, healthcare, hospitals, and diagnostics. The NFO is open for subscription from 25 June 2018 and will close on 9 July 2018. Let’s find out more details about it and also the reason why you should invest in it.

An Overview

As stated earlier, ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund is an open-ended equity fund which has a motive to generate capital appreciation by investing for a long-term into the entire spectrum of health-related sub-sectors. In short, it believes in turning country’s improving health opportunities into wealth-creation opportunities.

Top Highlights Related to this Scheme

The scheme's primary is to make investors participate in the core, non-discretionary healthcare sector by investing in Pharmaceuticals, Hospitals, Diagnostics, Preventives, Health Insurance, and allied sectors. The facts that India has one of the most rapidly rising healthcare market which is known globally, and there is a sudden increase in the awareness, government expenditure, and private investments in the segment should not be overlooked, thus this scheme is bound to make profits for those who are willing to invest with a long-term perspective.

Why Should You Invest in this Fund?

Due to increasing growth perspectives in this segment of the market, despite it being a non-discretionary sector, it has always managed to trade at a premium relative to the market, but the premium has narrowed down significantly in the last few years. It can be seen that the Indian pharmaceutical companies are currently going through rough patch. Thus, this underperformance of the sector as compared to broad market makes a strong case for investment.

Besides, the larger pharma-players are also working on strengthening their compliance systems to meet the guidelines of US FDA. This will remove the overhang of uncertainty around these stocks to some extent. Here onwards, even a small upsurge in the earnings will cause substantial re-rating of the pharma stocks as their valuations are rational.

It should be noted that sector funds are typically for prudent investors who have intimate knowledge about the particular sector and also a high-risk appetite. Henceforth, it would be better to consult a financial advisor before jumping on to any decision about investing. For more information regarding this, connect with the experts at MySIPonline via email or call.

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